international education
campusreview.com.au
Beyond China
The changing profile of Australia’s
international student market.
By Hayden Scown
E
ducation consistently rates as Australia’s third largest export,
representing 8 per cent of the nation’s international exports by
value, and adding $32.5 billion to our economy last year.
While China has continued to represent the top source of this
income, growth in the number of international students coming
from the country appears to be slowing due to softening domestic
economic conditions, movements in the yuan and the growth of a
competitive local higher education market.
Recent federal government data reflects this slowdown, with the
total number of Chinese students commencing courses in the first
semester of 2019 only 1.5 per cent higher than the number recorded
last year. This compares to growth of 7.4 per cent in 2018, and 19.8
per cent growth in the previous two years.
Although the value of Chinese education exports to Australia
reached $10 billion in 2017, as this growth starts to slow, a case should
be made for growing other sources of international student revenue,
to diversify income and protect institutes from economic fluctuations.
Fortunately, we’re seeing strong growth in the number of
international students coming from alternative markets, such
as South-East Asia, with student numbers from India and Nepal
increasing by 38 and 47 per cent respectively between March 2018
and 2019. We’re seeing other countries such as Vietnam, Thailand
and Malaysia predicted to contribute high enrolments in 2025.
Latin America presents another key market where revenue from
international students is growing, with numbers from Colombia and
Chile jumping by 21.5 per cent and 29 per cent respectively last year.
This strategy not only needs to encompass the high performing
markets mentioned above, but should also target high opportunity
markets that have the potential to become larger sources of revenue
in coming years.
CHALLENGES TO OVERCOME
Australia’s higher education sector has been reliant on Chinese
international students since the turn of the century, when
international student numbers really started to take off.
This has driven changes in marketing, recruitment and operations,
as international student attraction and support systems have focused
in on this lucrative market. These changes include specialised
inbound marketing teams set up at universities, who have been
tasked to recruit prospective students from international markets,
and the heavy consultation of cultural experts to advise on the best
approach with these new audiences.
This particular enhancement served the growing number of
Chinese international students studying in Australia, as it provided
a range of digital payment options, including UnionPay and Alipay,
which reflected the payment preferences of Chinese students.
Some of these operational requirements are easier to shift
than others. Engaging local agencies to support inbound student
marketing is a relatively straightforward exercise for most operational
teams, as is developing new marketing materials tailored to local
requirements.
Other more technical processes, including those associated with
international tuition payments, can prove more difficult and present
risks to Australian universities looking to do more business with
overseas markets.
One of the challenges those in the higher education space typically
face is how to manage and mitigate pricing risks when dealing with
other currencies.
Typically, the most popular countries for international students have
the strictest exchange controls in place. In order to provide suitable
payment options for emerging international student markets, we
focus on partnering with in-country organisations who are able to
help us solve the local currency capability.
CROSS-BORDER PAYMENT RISKS
There are various risks involved when managing cross-border
payments. Our global network, local market expertise and foreign
exchange services allow us to work closely with our university
partners to help them manage the risks of international trade and
facilitate cross-border cashflow.
Furthermore, accepting foreign transactions from emerging
markets can open up exposure to anti-money laundering violations
and risks that can be difficult to manage.
We work with a range of universities to help manage these risks,
using our know your customer (KYC) programs to ensure universities
are able to safely and securely accept payments in a range of
international currencies.
TECHNOLOGICAL SOLUTION
Those responsible for paying the tuition fees of international students
studying in Australia are after efficient, easy and safe ways to pay.
We’ve partnered with technology providers such as UniLink, which
provides OneStopSecure, a secure online payment system that
ensures a seamless payment experience for students.
Universities are also able to directly access our integrated
global payment solutions with visibility, certainty and efficiency.
These integrate with their existing solutions – web, letter of offer,
presentment or otherwise – to ensure the best payment experience
possible. Thanks to these advancements, accepting international
payments can be done at the click of a button.
A BRIGHT FUTURE
There are many added complexities in processes and administration
that come with attracting students from multiple markets. As
universities continue to look at ways to expand their reach into more
markets, they need to consider different regulations and requirements
to consolidate payments, which can vary greatly. ■
Hayden Scown is the director of education and financial
institutions for Australia and New Zealand at Western Union
Business Solutions.
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